my position is being eliminated (long story and it will not affect others). i am thinking about keeping cobra and wanted to see if anyone had experience with it. gracias...
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I am unofficially retired (ie not between jobs), but under 65 by a few years, so after my severance I decided to use the whole 18 months of cobra before moving to the exchange. I did price comparable plans (ie deductible) on the exchange, and they weren't any cheaper on the exchange (and some were more...BUT...if I was willing to go with a higher deductible it would have been cheaper on the exchange...ie...there are more options...so it might be better for others to go that route). Being on Cobra also had the advantage of being able to pay the premiums out of my HSA money (which I had been contributing to for years, and had alot of money built up), so I saved money on taxes.
On COBRA now - $900/month (single) for Anthem BCBS HSA plan - with a pre-existing condition and the government toying with ACA plans, I did not feel I had a solid choice. While it is expensive, at least I know what coverage I am getting and with the high deductible plan, I am still able to contribute to my HSA.
Such an individulal choice based on a myriad of considerations. Just make sure you review all options thoroughly prior to choosing a post employment healthcare option.
It used to be that cobra was unaffordable but now with Obamacare ruining medicine it is no more expensive then reality. I did get an exchange plan but if I make over 110k this year I have to pay full load which is same price as cobra. Same coversge but few take this exchange plan where I live and my primary care Dr is over a thousand miles away. All were that far. So all is expensive.
Cobra is really expensive. As long as you dont take the lump sum for severance, your insurance remains unchanged throughout the severance period. I think for me alone it was close to $600/month when I left 3 years ago.
My COBRA costs were way higher than other insurance. And, I had not met deductible, so that didn't help the calculations.
One item might make sense is if you have health issues and can't get life insurance elsewhere you could in theory keep it by converting it. While they can't reject you, non-preferred rates are awful. I said "no thanks" to all of it.
You won’t need it until your severance runs out. Look at your paycheck for the cost. Add what you pay and what the bank pays together and multiply by 26 (paychecks per year) and then divide by 12 (months in a year). It’s the exact same insurance as what you have now. You’re just paying the whole premium.
Don't know your circumstances, but you won't need to elect Cobra until your severance period ends. Once eligible, you have 60 days to elect Cobra and then another 45 to make the first payment. It's retroactive back to the day your coverage ends, so no gap. Use the election window to decide if Cobra is right for you or if other coverage might be cheaper. Cobra makes more sense if you've already met your deductible for the year. Prices for Cobra are on Teamworks. Good luck!